In 2014, Garrison Company Had Net Credit Sales of $1,500,000

question 197

Multiple Choice

In 2014, Garrison Company had net credit sales of $1,500,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $36,000. During 2014, $60,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis) . If the accounts receivable balance at December 31 was $400,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

• A) $40,000
• B) $150,000
• C) $64,000
• D) $60,000

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Definitions:

Gym Visits

The number of times an individual attends a gym or fitness center within a given timeframe.

Probability Distribution

A mathematical function that defines the probabilities of all possible outcomes for a random variable.

Standard Deviation

A measure of the dispersion or variability within a set of numerical data, indicating how spread out the values are from the mean.

Independent Variables

Variables in an experiment or model that are manipulated or classified to determine their effect on dependent variables.